001 a strategy for productivity

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Business Process Improvement

A strategy for productivity and competitiveness


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Objectives

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Objectives

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Five important steps

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Five important steps

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How the Business Makes Money

Revenue – Expenses =

Profit

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Business Process ImprovementBusiness Analysts connect to a Value Proposition through Value Delivery = Processes

Alignment with core business processes

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Process Improvement Objectives

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Process Improvement Objectives

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Good Business Processes…..Enable you to make better

business decisions and implement them faster

Help to improve and control your operations

Improve your production flow

Suppliers Inputs Process Customers Requirements

Step 1:

Outputs

Step 2:

Step 3:

Step 4:

See Below

Step 5:

SIPOC

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Suppliers Inputs Process Outputs Customers1-

2-

3-

4-

5-

6-

7-

8-

9-

10-

11-

12-

13-

1-

2-

3-

4-

5-

6-

7-

8-

9-

10-

11-

12-

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Process description

Process map:

Enablers

Crown Redwood CollectionCrown EdwardCode=CE 3.3

Suppliers & Inputs & Process & Output & Customers (SIPOC)

E

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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

November

X X X X X X X

X X

Product/MenCE 3.3 2CE 2.8 -CH 3.8 2CR 2.1SPATUDOR

Early shift

X X

Product/MenCE 3.3 2CE 2.8 -CH 3.8 2CR 2.1SPATUDOR

Late shift

Lifeline of Crown Pavilions

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Value Stream Mapping

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SUPPLIER 01

SUPPLIER 02

CUSTOMER

CUSTOMER

CUSTOMER

Production ControlManagement

Garden Gazebos (Range)-Tudor Date..........................

Part-PostStart work Break Break-2 Break-3 Finish

Setup time =12 min

P/T=2 min

I

Setup time =3 min

P/T=3 min

Setup time =0

P/T=12 min

Machine-01 Machine-02 Machine-03

5 min

2 min. 3 min

min.

12 min

P/T=Processing TimeC/T=Cycle Time

4 min 3 min

Storage Room

Tudor Post

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Production ControlManagement

Setup time =12 min

P/T=2 min

Setup time =3 min

P/T=3 min

Setup time =0

P/T=12 min

5 min

2 min. 3 min 12 min

P/T=Processing TimeC/T=Cycle Time

4 min 3 min

Storage Room

Tudor Post

THE CROWN 'WENTWORTH'

Setup time =0

P/T=12 min

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Number Task Resource Start End Duration2010

January February March April

1 Materials Available-No order/see/below 1/1/2010 1/1/2010 1

2 Design Foundation FDS 10/1/2010 11/1/2010 1

3 Order Item 01-Curtains SM 12/1/2010 12/1/2010 1

4 Order Item 02-Curtains SM 12/1/2010 12/1/2010 1

5 Order Item 03-Roof tile 12/1/2010 12/1/2010 1

6 Item 04-cushions 1/1/2010 1/1/2010 1

7 Item 06-Pillows 1/1/2010 1/1/2010 1

8 Task- shop floor 1/1/2010 6/1/2010 4

9 Task- shop floor 1/1/2010 6/1/2010 4

10 Task 1/1/2010 6/1/2010 4

11 Task 1/1/2010 8/1/2010 6

12 Task 9/1/2010 22/1/2010 10

13 Installation 16/2/2010 17/2/2010 2

14 Task 1/2/2010 2/3/2010 22

15 Task 1/2/2010 1/2/2010 1

16 3/3/2010 13/4/2010 30

Planned Vs Actual Address:Kale Road-125 Customer Mr& Ms Brothers Purchase Date 1/1/2010 Installation Date 10/2/2010

Time Cost QualityETACTime Overrun

ECACCost Overrun

Defects reportedNoneOR1-2-3-

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Production Maintenance Quality Engineering Production Control Purchasing Sales Admin.

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OEE/Focus

ed Improvement

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Autonomous

Maintenance

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Planned

Maintenance

4Trainin

g & Skills

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Initial Phase Management

6Quality Maintenance

7Administrative Work

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Safety &

Environment

Production Maintenance Quality Engineering Production Control Purchasing Sales Admin.

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Involvement of Each Department By Pillar (Example)

Involvement of Each Department By Pillar (Example) 1 OEE/ Focused Improvement 2 Autonomous Maintenance 3 Planned Maintenance 4 Training & Skills 5 Initial Phase Management 6 Quality Maintenance 7 Administrative Work 8 Safety & Environment

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Activity Management : Example of Activity Board

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Objectives: 0

TPM Progress Line-2The People

The action plan

The Results

OEE Casting

Updated on XX/XX by NB

Breakdowns/month

Process failures/monthThe Schedule

The achievementsThe Master Plan

Methodology

F.A.

The team The Chart

The Layout

Involvement Competencies

Well-defined and Well-managed Processes

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Quality Business Processes

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Quality Business Processes

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It’s all about the business

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It’s all about the business

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Creating a baseline

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Creating a baseline

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Creating a Functional Review Process “Standardized” template –

unique storyCreates a baseline (efficiency

and effectiveness) and metricsEach functional area presents

to Sr. Management

Creating a Functional Review ProcessFeedback memo with approvals

and directionInputs to Operational Plans and

Goals

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Content

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Content

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Content

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Content

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Context of Organizational Fit

Description of Services

Develop Acquire Install Administer Process* Retain Product Client Client and Service Claims Client

Enabling Processes


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Business Process Improvement2010 - a capacity review of this team will begin – metrics, skill set, tracking of time & volumes – to right size team

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Volume and Staffing

0

2

4

6

8

10

12

Staf

fing

0

500

1000

1500

2000

2500

3000

Volu

me

Staff 10 10 10 10 7 7 7 7 6

Volume 2848 2529 2057 2729 2248 2102 1767 2467 2064

Q1 '05 Q2 '05 Q3 '05 Q4 '05 Q1 '06 Q2 '06 Q3 '06 Q4 '06 Q1 '07

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Metrics – Provider Loads Provider Loads - Service Timing

90.00%

92.00%

94.00%

96.00%

98.00%

100.00%

Time

Perc

ent

Actual

Goal

Global Opportunities

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Identify Opportunities

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Best Practices—Lean

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Best Practices—Lean

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The Importance of Culture and People

Emphasis on the people – great people can execute a great work

How we do work is personalWorkforce engagementStrong change management

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Sustainable Operational Excellence Culture

It’s all about the peoplesoft V hard stuffTop down and bottom upQuick wins

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Sustainable Operational Excellence—Culture Shift “Learning to see”

– New thinking– New skills– New tools, sources of knowledge


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Resources www.bptrends.com “Lean Enterprise Value,” Murman et. Al “Business Process Change,” Paul

Harmon “Business Process Management,

Profiting from Process,” Roger T. Burlton

http://lean.mit.edu